Premium Income (TSE:PIC.A) Sets New 12-Month High - Here's Why

Key Points

• Premium Income Corporation's stock reached a new 52-week high of C$7.68 during trading, closing at C$7.39 with a trading volume of 21,527 shares.
• The company has a significant debt-to-equity ratio of 562.70 and a market cap of C$117.46 million, indicating a high level of leverage.
• Premium Income aims to provide cash distributions to Class A shareholders by investing at least 75% of its assets in common shares of major Canadian banks.

Premium Income Corporation (TSE:PIC.A - Get Free Report) shares reached a new 52-week high during mid-day trading on Tuesday . The stock traded as high as C$7.68 and last traded at C$7.39, with a volume of 21527 shares traded. The stock had previously closed at C$7.42.

Premium Income Trading Up 0.5%

The firm has a market capitalization of C$124.92 million, a price-to-earnings ratio of 2.26 and a beta of 1.18. The business's 50-day moving average price is C$6.88 and its 200 day moving average price is C$5.93. The company has a debt-to-equity ratio of 562.70, a current ratio of 1.18 and a quick ratio of 1.45.

About Premium Income

to provide Class A shareholders with quarterly cash distributions equal to the amount, if any, by which the net realized capital gains, dividends and option premiums (other than option premiums in respect of options outstanding at year-end) earned on the Funds portfolio in any year, net of expenses and loss carry forwards, exceed the amount of the distributions paid on Class A shares upon windup of the Fund To accomplish its objectives, the Fund invests at least 75 percent of its net asset value (``NAV) in common shares of the Bank of Montreal, The Bank of Nova Scotia, Canadian Imperial Bank of Commerce, Royal Bank of Canada and The Toronto-Dominion Bank (collectively, the ``Banks) and may also invest up to 25 percent of its NAV in common shares of National Bank of Canada.